U.S. stocks jumped about 2% on Tuesday as investor optimism about renewed economic activity overshadowed tensions between the United States and China.
Travel and leisure stocks including United Airlines, Carnival, and MGM Resorts rose as states continued to ease lockdown measures.
The White House said on Sunday that it would likely impose sanctions on China if the country implements a controversial national security law in Hong Kong, further escalating tensions between the economic giants.
WTI crude oil rose 3.9% to $34.54 per barrel.
U.S. indexes jumped on Tuesday as investors focused on economic openings and a new wave of uncertainty between China and the United States.
States continued to ease lockdown measures over Memorial Day weekend, opening up a new test for markets affected by the coronavirus pandemic. Some of the most successful early trade participants included the firms that were hardest hit by the outbreak: United Airlines, Carnival, and MGM Resorts scored at least 8%.
New pressure between Hong Kong and China has weakened sentiment and threatened to strain relations between the United States and China. On Sunday, the government said the United States would probably punish China if it passed a controversial national security law in Hong Kong.
Here's where the U.S. indexes stood shortly after 9:30 a.m. on Tuesday:
S&P 500: 3,016.31, up 2.1%
The Dow Jones industrial average: 25,054.29, an increase of 2.4% (589 points)
Nasdaq composition: 9,472.94, an increase of 1.6%
As a result, the S&P 500 rally exceeded 3,000 for the first time since early March.
Investors also drew attention to the news made by the Novavax biotech company on the creation of a vaccine against coronavirus. On Monday, the company announced that it has begun human trials of the vaccine and expects results in July. The company's shares jumped 16% in early trading.
Markets had previously soared on announcements of positive research results, recently surging after Moderna reported positive changes in trials of its experimental vaccine.
West Texas Intermediate crude rose in price during the session, jumping 3.9% to $34.54 per barrel. Brent crude, the international commodity standard, added 3.8% to $36.48.
The positive start followed the market's best week since early April. Despite a mixed close in trading on Friday, the major U.S. indexes rose last week following the announcement of Modernity and growing optimism about the reopening of the economy. Inflows into major technology stocks such as Facebook and Apple have also lifted highly concentrated performance.
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